2. Marks and Spencer Case Study
5. The essay explains what the important parts of Marks and Spencer’s (M & S) current and historic strategies are. The value chain is analysed to explain M & S’s competitive advantages. The value chain focuses on inbound logistics, operations and marketing & service analysis of M & S. Furthermore, the essay interprets what the problems of present strategies M & S will meet in the future and what new strategy M & S may follow. 6.
7. Key Components of M & S’s Current and Historic Strategies 8.
9. M & S implemented different strategies to solve various problems when it was at different periods of development. 10.
11. The following is M & S’s main strategies. Firstly, M & S tried to build a good relationship with its suppliers and customers as its strategy. M & S ensured the highest quality of products through working with its suppliers and encouraging them to use the most efficient and modern production techniques so that M & S got more competitive advantages in terms of quality of products than its competitors. For example, M & S introduced the ‘St Michael’ logo as its sign of quality of products at the beginning of the development of the company. Therefore, the reputation of highest quality of products was built among M & S’s customers. Secondly, the strategy concentrated on restructuring, namely, top management level separated company into three parts between 1998 and 1999 when M & S had faced the difficulties. Furthermore, M & S adopted a customer-focused strategy in order to identify customer preference and trends and deeply understand what customers really need because its competitors were more responsive to changing market. Thirdly, M & S implemented creating a new corporate image strategy. M & S changed store image, built a pilot store, separated management structure into seven business units and launched new product brand so that the strategy became more customer focused. Moreover, M & S had implemented expansion overseas markets strategy in order to look for new business opportunity. However, the strategy did not develop in overseas markets smoothly so that M & S had to change its original strategy to close its stores and withdrew overseas markets. M & S changed its suppliers as cutting cost strategy. For instance, it switched its suppliers of certain products, such as clothing range, instead of 100 percent Asian supplier. Finally, M & S implemented expansion UK market with new product ranges strategy through developing its homeware department, Simply Food convenience store, and financial services. 12.
13. Strategic Model for the Success of M & S
15. M & S has a huge success about profits and market share during the late 1990s. The success of M & S is analysed through value chain in order to explain competitive advantages of M & S for adding value for its customer. The primary activities of value chain consist of inbound logistics, operations, outbound logistics, marketing & sales and service. The analysis will focus on inbound logistics, operations and marketing & service of M & S. 16.
17. Firstly, inbound logistics are concerned with getting the goods from suppliers and storing them until the goods are required by operations, handling and transporting them within the company (Lynch 2003). In terms of inbound logistics of M & S, it may consider the size of stock and how to deal with the excess stock. In M & S case, it planed to offer clothes at a discounted price to factory outlet malls. The aim of the plan is to sell excess stock. The benefits of the plan for M & S are that it may reduce the cost of stock and the rest stock space can be used for new items. M & S has to do like that because some competitors of M...